Finance: Recurring Significant Internal Control Deficiencies
||First Year Reported
||Because of limitations in its automated accounting systems, the State has not complied with the provisions of the U.S. Office and Management Budget (OMB) Circular A-133 requiring auditees to prepare a Schedule of Expenditures of Federal Awards that includes the total federal awards expended for each individual federal program.
|Finance is aware of the importance of the reporting requirement. The State's accounting system will require substantial modification to comply with federal and state requirements. Finance is working on both a long-term and short-term plan to correct this finding. In the short term, in a cooperative effort with state agencies, Finance is working on an interim solution for fiscal year 2010-11. In the long term, the State has received legislative approval for a new integrated statewide financial management system -- the Financial Information System for California (FI$Cal Project). The FI$Cal Project is a comprehensive statewide initiative costing over $1 billion and is anticipated to be completed by 2017.